Infineon Technologies (IFNNY) beat profit expectations in the first quarter after the German chipmaker and supplier to Tesla  (TSLA) - Get Tesla Inc Report and Delphi  (DLPH) - Get Delphi Technologies Plc Reportcontinued to enjoy a boost from its automotive business.  

The Munich, Germany-based company booked net profit of €161 million ($174 million) on revenue of €1.645 billion in the first quarter ended December 2016. That compares with the market consensus calling for net profit of €157 million on revenue of €1.6 billion. 

Infineon's shares are at a record high, closing Wednesday at €17.20.

"We had a good start into the new fiscal year," said CEO Reinhard Ploss. "In the first quarter revenue and earnings were better than expected, driven in particular by strong demand for our components for automotive electronics and MOSFET power transistors. We expect to achieve further growth in our markets during the coming months and, based on the long-term trends, also remain optimistic about the future."

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The company expects revenue in the second quarter to advance 5%, plus or minus two points, quarter-on-quarter. 

The biggest expansion came from the automotive segment, with revenue rising to €705 million from €614 million in the same period a year earlier, followed by the industrial power control segment, which together offset the declines in the power management and chip card &security and other businesses.

In October, the company acquired Innoluce, a fabless semiconductor company, to boost its position in automated driving. 

In addition to Tesla, the second biggest player in the automotive chip market and accounts for around 10% of the automotive market, counts Autoliv (ALV) - Get Autoliv Inc. ReportContinental (CTTAY) Bosch (BSWQY) , andValeo (VLEEY) in its list of key customers. Infineon's products are used in assistance and safety systems as well as powertrains.

Infineon's products are also applied in security-related products, home appliances, mobiles devices and industrial vehicles.